How does a concern for the natural environment affect cross-cultural management?

Question

What will be an ideal response?

Answer 1

The industrialization that accompanies economic development increases the world’s prosperity but
also increases the potential for ecological disruption. Tensions between economic growth and
environmental protection will continue to rise. Developing nations will not be able to imitate the
consumption patterns of the developed world. But also, the lifestyles in the rich nations of the world will
need to change. Maximization of profits will need to be replaced by the expansion of opportunities. For
international managers, this means that organizations involved in global business will be expected to
explicitly consider their role in preserving the natural environment. Relevant to this increasingly
important role of international managers are three principles suggested by Bird and Smucker (2007) that
managers must take into account when addressing the responsibility of international organizations in
developing countries:
? An awareness of the cultural, historical, and institutional dynamics of the local community,
which reflect the type of responsibilities expected of the organization and the limitations of any
universal codes of conduct.
? The necessity of nonintimidating communication with local stakeholders that allows the
organization to recognize and respond to local concerns in pursuit of its own objectives.
? The need for the firm’s operations to safeguard and improve the social and economic assets of
the local communities with regard to the inevitable disruptions that international business
brings.